Who would of thought that over the weekend with 650000 emails to review in less than a week that Comey would come out and calm the markets by telling Congress there is nothing new in the emails on Weiners computer that changes his mind on his original decision.
If you predicted that and got long Friday my hats off to you. However I am sure a few people profited from the massive rally we are seeing in the markets overnight.Not that I am a cynic but am just a realist.
So what is one to do today with the market gaping up over 1%. Should you jump on board and get long on the open? Myself I am sitting this out until Wednesday at the earliest When I hear that one of the candidates has called to concede I will consider getting back into the market.
I do not think the surprises are over just yet. Even with the government supposedly hacking into the Wikileaks servers overnight I doubt that will effectively prevent the Wikileaks from continuing. And it seems that NYPD and some underlings in the FBI might have a few things to say today. Or perhaps its just my imagination getting away from me in a heated election year.
One other alternative no one has discussed is perhaps Obama will get on Mexican TV and encourage people to come across the border to vote! After all hinting at no consequences for illegals to vote is not far from doing just that.
Maybe I am showing my years being close to 70, but an american president encouraging illegals to vote by hinting there would be no consequences does not sit well for me. People have fought and died for the freedoms we have here in the U.S. To treat these freedoms so lightly is a recipe for disaster.
I say this from neither the Democrat or Republican position. Only as an American that has been proud of his Country and what it has shown to the world how a Democracy can flourish and succeed. It showed an alternative to the despotism around the world that people live in fear for doing or saying the wrong thing.
This shift in American politics does not bode well for the long term stock market. Matter of fact, with our Congress in such miserable condition the ever increasing welfare state will just get bigger. Its already bursting at the seams. Our debt has ballooned to record levels. A record number of people are out of the workforce. Social security is heading toward broke as our politicians can not keep there hands off our money, and on the geopolitical front there is a time bomb just waiting to go off.
So if your invested with all your assets in the stock market I would suggest changing gears. Start reading about asset allocation models. These are one of the ways to protect yourself in the event of a market meltdown. Hedging is a skill left to the professionals. I know of no one that gets that right who is not a professional trader and even they have difficulty with that technique.
If you wish any information on market allocation models just send me an email and I will send you some of the best sites. Its the only way I know to effectively invest your assets for the long term.
Today the market is gaping up over 1%. I will not be trading as I indicated until Wednesday at the earliest. The market right now is strictly news driven. And at any second new news can come out sending the market into a nose dive.
I will be scalping the ES today however. Primarily that is to get my brain working this morning as I had very little sleep again last night. Scalping the ES or NQ is an endeavor that few succeed in. Its fun but your up against the best computer models in the business with unlimited resources. Standing in front of a home computer on a cable connection that has a delay of several seconds is quite an uphill battle:)
Finally let me say that my above comments are not meant to promote or criticize either party. Both in my opinion are equally at fault for the state of America today. You cannot criticize the party in power for overstepping its boundaries as that is what the party in power does regardless who has the control. Its human nature. But it is the other party that is supposed to provide the checks. So as an Independent it saddens me to see these checks not working.
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. It’s my private twitter feed for the stock market and its free. Sports Handicapping is the subscription-based part of this site. But considering the cost of joining it’s almost free:)
Good Luck Today
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